Maia, Portugal - August 4th 2010
Results of the first half of 2010
Sonae Sierra recorded a Total Net Profit increase of 101%
- EBITDA grows 10% to €57.9 million
- NAV grows 1.8% to €1.25 billion
- Portfolio sales grow 6.6% in Europe and 19.2% in Brazil
- Indirect Results influenced by the changes in the Portuguese Corporate Tax Income
- Five awards in the first six months of the year
Sonae Sierra, the international shopping centre specialist, presented a Total Net Profit of 648 thousand euros at the end of the first half of 2010, an increase of 101%, since the Company recorded a negative result of €94.2 million in the homologous period.
The favourable change in the Total Net Profit was caused by a Value Created on properties much higher than the same period of last year due to the smaller increase in yields in 2010 in Europe.
The Direct Income from Investments recorded a 6% increase compared to the first half of 2009, due to the increase of the portfolio with the inaugurations of LOOP5 in Germany and ManauaraShopping in Brazil in 2009, and LeiriaShopping, in Portugal, in 2010.
EBITDA recorded a 10% increase, and is now at €57.9 million, compared to the €52.6 million presented in the first half of 2009.
The Occupancy Rate of the portfolio remained high and stable, recording a value of 96.3% at the end of June 2010.
Sonae Sierra's portfolio presented a positive performance, with sales growing 6.6% (+1.5% like-for-like) in Europe and 19.2% (+8.8% like-for-like) in Brazil, compared to the homologous period.
Value Metrics
The Company measures its performance, in a first instance, on the basis of changes in Net Asset Value (NAV) plus dividends distributed. The Company calculates its NAV on the basis of the guidelines published in 2007 by INREV (European Association for Investors in Non-listed Real Estate Vehicles), an association of which the Company is a member.
On the basis of this methodology, the NAV of Sonae Sierra, as of June 30 2010, was €1.25 billion, an increase of 1.8% compared to the value recorded at the end of 2009.
One shopping centre inaugurated and two others under construction
Sonae Sierra's growth and expansion strategy continues, although the Company has adjusted its development timings to the evolution of the financial and retail markets.
During the first quarter of the year, in Portugal, the company successfully completed the refurbishment of AlbufeiraShopping (Algarve), and inaugurated LeiriaShopping (Leiria) with 100% of the GLA (Gross Lettable Area) already let.
Representing an investment of €79 million, the shopping centre welcomed more than 120 thousand visits in the first four day alone, which is proof of the development's impact on the region, and provides great confidence in its future performance.
At the end of the first semester of 2010, the Company has two new shopping centres under construction and 8 projects in different stages of development in Portugal, Italy, Germany, Greece, Romania and Brazil.
In Italy, Sonae Sierra is currently developing Le Terrazze in La Spezia, which is scheduled to be inaugurated in the third quarter of 2011, represents an investment of more than €125 million, and has more than 50% of its GLA already let. In Brazil, the Company initiated the construction of Uberlândia Shopping (Uberlândia) scheduled to open in 2011, and representing a total investment of €62 million.
Entry in Colombia - the Company's 8th market
In June 2010, Sonae Sierra announced its entry in a new market, Colombia, with the creation of Sierra Central, a service providing company in the shopping centre sector, including management and development of shopping centres.
Sierra Central is owned 50/50 by Sonae Sierra and Central Control, a Colombian company which already provides management services for Jardín Plaza, one of the main shopping centres in Cali, the country's third largest city. The Central Control owners were also responsible for the development of this centre and Centro Chipichape, in the same city.
Five new awards in the first semester of 2010
Sonae Sierra received five awards - three national and two international - in the first six months of the year, which join the other 85 awards collected throughout the company 21 years of activity.
For the second year in a row, the company was distinguished at the European Risk Management Awards, an initiative of British magazine Strategic Risk that rewards the best and most innovative actions on the risk management area. This award, in the Best Environmental Risk Control category, acknowledges Sonae Sierra's commitment to being the best sustainable shopping centre specialist. In another international acknowledgement, the International Council of Shopping Centres (ICSC) rewarded Sonae Sierra for the refurbishment project of Valecenter Shopping Centre (Italy) in the Refurbishment & Extension category, at this year's edition of the ICSC European Shopping Centre Awards.
Nationally, Sonae Sierra was considered the Best Developer of the Year, in the Real Estate category, at the Construir Awards 2010. The prizes of Construir Newspaper, one of the most prestigious publications of the sector, elected the best of 2009 in areas such as Architecture, Engineering, Construction and Real Estate.
Also at the same awards, the company was distinguished for the Best Office Building of 2009 with the Colombo Oriente Tower, developed by the consortium comprised of Caixa Geral de Depósitos Group, Iberdrola Imobiliária, ING Real Estate and Sonae Sierra.
Centro Colombo, Sonae Sierra's largest Shopping Centre in Portugal, was considered the Best Shopping Centre at the Hipersuper Awards 2010. The eight nominees included two other Sonae Sierra shopping centres - Centro Vasco da Gama and NorteShopping -, both shopping and leisure references in their catchment areas for their dynamism, variety and quality.
About Sonae Sierra
Sonae Sierra, www.sonaesierra.com, is an international shopping centre specialist, with a passion for bringing innovation and excitement to the shopping centre industry. The Company owns 51 Shopping Centres in Portugal, Spain, Italy, Germany, Greece, Romania and Brazil, with a total Gross Lettable Area (GLA) of 2 million m2. The Company is also present in Colombia since June 2010. Currently, Sonae Sierra has 2 projects under construction and 8 new projects in different phases of completion in Portugal, Italy, Germany, Greece, Romania and Brazil. In 2009 our Shopping Centres had more than 436 million visits.
Sonae Sierra's Consolidated Profit and Loss Account and Balance Sheet
Consolidated Profit and Loss Account and Balance Sheet by business
